Journal of Resources Development and Management

ISSN 2422-8397 An International Peer-reviewed Journal

Vol.4, 2015

www.iiste.org

Decentralized Collective Bargaining and Salary Differentials in

the Civil Services in Nigeria
ADEGOROYE Adedibu Abayomi
Department of Management and Accounting, Ladoke Akintola University of Technology Ogbomoso
E-mail: ade_goroye2000@yahoo.com
Abstract
The study examined the effects of decentralized collective bargaining on salary differentials and industrial
harmony in the Civil Services in Nigeria. Primary data were collected through structured questionnaire and oral
interview in six selected Civil services in Nigeria. Interviews were also conducted with Directors of
Establishment in each of the selected Civil Services and secretaries of the Association of Senior Civil Servants in
Oyo, Kwara, Kaduna, Adamawa, Cross Rivers and Enugu states representing a state in each of the six geopolitical zone. Secondary data were collected through official documents of the Association of Senior Civil
Servants of Nigeria. The data collected were analysed using descriptive statistics. The study revealed that
decentralised collective bargaining has led to deregulation of salary grade structures in the Civil Services in the
country, presently there exists 13 salary grade structures for various professionals respectively in the Civil
Services. Further decentralized collective bargaining was the major cause of salary differentials in the Civil
Services in Nigeria as recorded by 76.4% of the respondents. Similarly, decentralized collective bargaining was
the major cause of industrial conflicts in the Civil Services in the country as recorded by 85% of the respondents.
The study concluded that decentralized collective bargaining to be modified in line with ecology of
administration in Nigeria in order to make salaries competitive in the public sector.
1.0
Introduction
Salary is a major factor in the economic and social lives of any community (ILO 1992). For workers salary is
primarily a source of income, but can also be a source of social prestige and may be judged according to its
fairness. While government interest lies in the fact that it is a major employer of labour both in the developed
and developing countries and salary contributes to a great extent to the economic well being of the citizenry
(ILO, 1992).
In Nigeria wage labour was developed during the colonial era in order to meet the commercial needs of
both local and European companies (Allen, 1971). Subsequently, government workers institution later developed
as a result of the institution of urban administration and the creation of public utilities. This generated a standing
corpus of officials who earned different kind of pay (Cohen, 1981). The service comprised both the European
and native staffs with different kind of pay for both of them respectively. While the European staff conditions of
service were for better off than the natives condition of service (Otobo, 1987). Thus, built the foundation for
salary differential in the Civil Services in Nigeria.
In order to get fair and equitable salary administration and reduce salary differentials in the colonial
civil services different salaries and wages commissions/committees were established. Like the Batt Committee
(1919), Rice Committee (1919), Hunt Committee (1934), Bridges Committee (1941), Harraging Committee
(1945), Tudor Davies Committee (1946) and Miller Committee (1948). Notwithstanding, the recommendations
of these committees deepened salary differentials in the countrys civil service (Kester, 2006).
For instance, the Hunt Committee recommended financial wages, with differentials in pay of each
province respectively. While the Bridges Committee categorised towns into categories A, B, and C. The basic
pay and cost of living allowances in these categories differed. Similarly, the Miller Committee (1947)
established the principle of payment on geographical basis thus he divided the country into six geographical
zones with differentials in pay for each region (Fashoyin, 1987).
This was the situation at the introduction of federalism in the country by Lytellton constitution in 1954.
Infact, federalism brought salary differentials in the four civil services into limelight as each region tried to
undo one another in the payment of highest minimum wage. However, in 1963 the Morgan Commission divided
the country into six wage zones with different wages for each zone respectively (Otobo, 1988). The agitations
that followed the wage zones and certain economic developments made the Udoji commission of 1974 on review
of the public services to recommend the unification of salary grade structure in the public service in Nigeria.
Subsequently, the principle of equal pay for equal work irrespective of the public sector where an employee is
employed was established (Iwuji, 1989). As a result, the wage zones were abolished and a unified salary
structure of N720 per annum minimum wage for the least paid worker was recommended. In a related
development, the Shagari administration in 1981 enacted the minimum wage Act of N125 per month. Otobo
(1987) submits that due to successive internal reviews, the minimum wage crept up until the economic
recession properly set in, in 1983 and many state governments and parastatal found themselves owing areas of
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Journal of Resources Development and Management

ISSN 2422-8397 An International Peer-reviewed Journal
Vol.4, 2015

www.iiste.org

salaries for upward of six months in several instances.

The Buhari regime that took over from the Shagari regime took certain actions to ameliorate the
problem associated with the implementation of national minimum wage. However, the actions were not adequate
to address the problems associated with collective bargaining in the countrys public service. As a result,
decentralized collective bargaining was designed by president Babangida administration to achieve a realistic
remuneration policy and a crises free industrial relation practice in the civil services of the federation (Babangida,
1991). As previous approaches failed to bring out a crises free salary determination process in the civil services
in Nigeria. Despite this policy, the crises associated with salary determination process and industrial relation
practices in the civil services in Nigeria have not abated.
This has made salary determination process intensively problematic and controversial within the
nations political economy. It is against this backdrop that this study sets out to examine decentralized collective
bargaining and salary differentials in the civil services in Nigeria.
2.0
Objectives of the study
The objectives are to:
(i) assess the effects of decentralized collective bargaining on salary differentials in the civil services in
Nigeria; and
(ii) determine the effects of decentralized collective bargaining on industrial harmony in the civil services
in Nigeria.
3.0
Research Methodology
Primary and secondary data were collected for the study. Primary data were collected through the administration
of questionnaire and in-depth interview. Purposive and random sampling techniques were used for the study. A
state each was purposively selected in the six geopolitical zones in the country. The selected states were Oyo
(Southwest); Kwara (North Central); Kaduna (northwest); Adamawa (northeast); Enugu (Southeast) and Cross
River (South south). The reason for choosing these states is that opinion sampled from these states was
representation of the opinions from each of the geo political zone. Two each of Ministries and Extra Ministerial
Departments were also purposively selected for the study. They are the Ministries of Establi9shment and that of
Finance and the Head of Service and Accountant General Offices. Whereas the Ministry of Establishment is
responsible for issues relating to industrial relations and staff matters in the Civil Service, that of Finance is
responsible for government expenditures including salaries. Finally, Civil Servants on Grade level 07-14 were be
purposively selected for the study because they belonged to the Unified Civil Service Class. From each of the
purposively selected samples, random technique was used to further select the respondents in the selected
Ministries and Extra-Ministerial departments. A total number of 650 respondents representing 2% of 31,546
which is the study population was randomly selected. This technique in particular gave equal chance to every
member of the senior civil service cadre for the purpose of the study. In-depth interview was conducted with the
Heads of Service in each of the selected civil services, the Permanent Secretaries in the Ministries of
Establishment and Finance and the Chairman of the staff team of the Joint Negotiating Councils in each of the
selected Civil Services respectively. Relevant documents of the Association of Senior Civil Servants of Nigeria
constituted key source for secondary data. Data collected were analyzed with appropriate descriptive statistics.
4.0
Discussion of Findings
4.1
The Effects of Decentralised Collective Bargaining on Salary Differentials in the Civil Services in
Nigeria
This section presents, analyses and discusses data on the effects of decentralised collective bargaining
on salary differentials in the civil services of Nigeria. Presented hereafter, is the Table on Questions on the effect
of the policy on salary differentials in the civil services in Nigeria.

44

Journal of Resources Development and Management

ISSN 2422-8397 An International Peer-reviewed Journal
Vol.4, 2015

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Table 1:
Questions on Decentralised Collective Bargaining and Salary Differentials in the Civil
Services in Nigeria
(Figures expressed in percentage)
S/N ITEMS
SA
A
U
D
SD
TOTAL
1
A national minimum wage of any kind is desirable in Nigeria 47.9 19.2 2.7 12.3 17.9 100
2
National Minimum wage should be fixed to check state
54.4 23.1 4.0 7.0
11.5 100
government inclination for low salaries payment in their civil
service respectively
3
Minimum wage in the civil service should vary from state to
16.3 11.9 1.6 21.1 49.1 100
state in Nigeria
4
In the civil services the minimum wage should vary between
15.9 12.6 3.7 19.2 48.6 100
the federal, state and local governments respectively
5
The present salary differential between the federal and state
16.1 14.1 9.0 25.6 35.2 100
civil services in Nigeria is desirable
6
Decentralised collective bargaining in the salary
48.0 28.4 9.5 5.3
8.8
100
determination process in the civil service is a major cause of
salary differentials in the civil service of Nigeria
7
Union leaders at the state level lack bargaining power
28.0 32.2 7.0 17.0 15.8 100
8
Resuscitating JNPSNC will increase the bargaining power of 45.9 31.7 8.1 9.7
4.6
100
the union at state levels
Source: Field work, June, 2011
Findings from Table 1 reveal that 47.9% and 19.2% of the respondents strongly agreed and agreed that
a national minimum wage of any kind was desirable in Nigeria, another 17.9% and 12.3% of the respondents
were of the view that minimum wage of any kind was not desirable in Nigeria and 2.7% of the respondents were
undecided on the desirability of the enactment of national minimum wage in Nigeria. The implication of this is
that majority of the respondents wanted national minimum wage in Nigeria, this is due to the fact that national
minimum wage plays political, social and economic roles in the nation.
Furthermore, majority 54.4% strongly agreed and 23.1% agreed that the national minimum wage should
be fixed by the Federal Government to check State Governments inclination for payment of low salaries in their
civil services. However, 11.5% strongly disagreed while another 7.0% disagreed that the Federal Government
should fix the national minimum wage. Meanwhile, 4.0% of the respondents were undecided. This implies that
majority of the respondents would want the national minimum wage to be fixed by the Federal Government as
this would discourage the State Governments from paying low salaries in the civil services. This finding was
confirmed by the interview method most especially the labour side. They were of the opinion that if States were
allowed to determine their salaries independently, they would end up paying low salaries.
In a related development, findings from Table 1 reveal that majority of the respondents (49.1% and
21.1%), were of the view that minimum wage should not vary from State to State civil services in Nigeria,
respectively. Another 16.3% and 11.9% respondents were of the view that minimum wage should vary from
State to State civil services in Nigeria. 1.6% of the respondents were indifferent. The implication of this is that
civil servants in the civil services of Nigeria want minimum wage to be uniform throughout the civil services in
Nigeria. This explains why unions in the state used to compare notes during any negotiation process and would
not want the salary structure of the nearby State to be significantly different from theirs. Sometimes, they used to
adopt the salary structure of the other States in the same geo-political zone.
Similarly, 48.6% of the respondents strongly disagreed and 19.2% respondents disagreed that minimum
wage should vary between the Federal, State and Local Government Services in Nigeria. Another 15.9%
strongly agreed and 12.6% agreed that minimum wage should vary between the Federal, State and Local
Government Services in Nigeria. On the other hand 3.7% of the respondents were undecided. This implies that
civil servants in the civil services did not want variations in inter-civil service salary structures in the civil
services in Nigeria. Findings from the interview revealed that civil servants did not want regional minimum
wage in Nigeria, which was the situation before the unification of Salary Grade Structure in 1974.
Furthermore, 35.2% of the respondents strongly disagreed and another 25.6% disagreed that the present
inter and intra civil services salary differentials in Nigeria was desirable. Meanwhile, 16.1% of the respondents
strongly agreed and 14.1% agreed that the present inter and intra civil service salary differentials in the civil
services of Nigeria were desirable. On the other hand, 9.0% of the respondents were undecided. The implication
of this is that civil servants across the geo-political zone wanted to be on the same salary structure with their
Federal counterparts. They did not want the present salary differentials in the civil service. This explains why
Unions at the States level usually agitate to be on the same salary structure with the Federal civil service; hence,
the protracted strike actions usually embarked upon to press home their demands.

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Likewise, 48.0% of the respondents strongly agreed and another 28.4% agreed that decentralised
collective bargaining in the salary determination process is a major cause of salary differentials in the civil
services in Nigeria. On the contrary, 8.8% strongly disagreed and 5.3% of the respondents disagreed respectively
that decentralised collective bargaining is a major cause of salary differentials in the civil services in Nigeria,
while another 9.5% were undecided. The implication of this is that civil servants were of the opinion that
decentralised collective bargaining was a major cause of intra and inter-civil service salary differentials in the
civil services in Nigeria.
Besides, the results reveal that union leaders at the state level lack bargaining strength to get what they
wanted from the State Governments as 28.0% and 32.2% respondents strongly agreed and agreed respectively.
On the other hand, 15.8% and 17.0% of the respondents strongly disagreed and disagreed, while another 7.0% of
the respondents were indifferent. This means that the civil servants were of the view that the local branch of their
unions could not adequately cater for their needs at the local level. This explains why the national union leaders
often encouraged restiveness during the struggle for the implementation of a new national minimum wage.
Furthermore, from the interview conducted with the Secretaries of Association of Senior civil servants in the six
geo-political zones respectively, they all confirmed that the Union leaders at times succumbed to the threats of
State Governments during the struggle for the implementation of any new minimum wage in Nigeria.
Consequently, 45.9% strongly agreed and 31.7% agreed and they were of the view that reconstituting
the Joint National Public Service Negotiating Councils (JNPSNC) would give leverage to Union leaders to
bargain effectively at the State level. But 4.6% and 9.7% strongly disagreed and disagreed respectively. However,
8.1% of the respondents were indifferent. The implication of this is that the civil servants wanted centralised
bargaining structure in the civil services of Nigeria because the Joint National Public Service Negotiating
Councils stood for centralised bargaining structure.
The interview revealed that all the respondents wanted collective bargaining to be used as the tool for
salary determination in the civil services in Nigeria. In addition some wanted the labour issue to be put under the
concurrent legislative list as this would give state governments opportunity and legal backing to bargain with
their labour unions as the fiat approach by federal government is not desirable. Even though some of the
respondents (from Kwara, Kaduna, Adamawa) wanted the federal government to determine the salaries of the
civil servants centrally. They argued that by this the revenue allocated to states might be increased in order to
pay salary and reduce inter-civil service salaries differentials in Nigeria.
The respondents were unanimous in their responses that Public Service Negotiating Councils were not
effective at the state levels across the state of the federation in comparison with their effectiveness at the federal
level. This is due to lack of political will on the part of the executive arm of government in the state and lack of
bargaining strength on the part of the state unions.
The result of the interview schedule revealed that the major cause of salary differentials in the civil
services in Nigeria is decentralized collective bargaining policy occasioned by the Structural Adjustment
Programme (SAP) which brought about the idea of privatization and commercialization programme culminating
in discrimination in wage rates in the country. Decentralized collective bargaining has created a platform for
salary deregulation. That is salaries and allowances became professionalized leading to different salary structures
within the public services of Nigeria (Federal, State, Tertiary Institutions, Medical, Military and Paramilitary) as
applicable. The differential is always attached to ability to pay by every employer and the nature of the
profession. This has led to various salary structures within the civil service. It encouraged salary differentials as
the policy enabled various professions in the civil service to bargain for salary structure peculiar to their various
professions respectively. For instance, there exists thirteen (13) salary charts in the public service. They are;
(i)
Consolidated Public Service Salary Structure (CONPSS).
(ii)
Consolidated Research and Allied Institution Salary Structure (CONRAISS)
(iii)
Consolidated Armed Forces Salary Structure (CONAFSS)
(iv)
Consolidation Intelligent Community Salary Structure (CONICSS)
(v)
Consolidated University Academic Staff Salary Structure II (CONUAS II)
(vi)
Consolidated Tertiary Institutions Salary Structure II (CONTIS II)
(vii)
Consolidated Tertiary Education Institution Salary Structure (CONTEDIS)
(viii)
Consolidated Poly and Colleges of Education Academic Staff (CONPCASS)
(ix)
Consolidated Health Salary Structure (CONHESS)
(x)
Consolidated Medical Salary Structures (CONMESS)
(xi)
Consolidated Legislative Salary Structure (CONLESS)
(xii)
Consolidated Police Salary Structure (CONPOSS)
(xiii)
Consolidated Para Military Salary Structure (CONPASS)
Consequently, the various professionals salary structures as occasioned by decentralization of collective
bargaining policy in the civil services has led to salary differentials between the generalist administrators and the
specialists professionals thus bringing back the conflicts between the two groups which the Udoji Commission

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(1974) had tried to resolve.

The staff side also submitted that they usually shifted ground for the state government during any
negotiation meeting when they were confronted with options of retrenchment in order to meet up the salary
demand. Besides, they also succumb to government blackmail when they were accused of being sponsored by
opposition parties or that paying the demanded salary would deny the government of having money to prosecute
its development programs. This usually aroused the sentiments of other citizens in the state against the civil
servants.
In Table 2, below, the calculated mean and standard deviation of salary determinants are presented.
Table 2: Mean value and Standard Deviation of Salary Determinants in the Civil Services in Nigeria
ITEMS
N
MEAN
SD
Ability to pay
551
1.32
.616
Willingness to pay
551
1.70
.791
Weak union at state level
551
2.11
.807
Source: Field work, June, 2011
Table 2 shows that out of the three factors listed as salary determinants, weak bargaining power State
level has the highest mean of 2.11 followed by willingness to pay of 1.70 mean and lastly ability to pay with
1.32 mean. This shows that by extension weak bargaining power of Unions at the State level was one of the
causes of salary differentials in the civil services in Nigeria. Thus, the salary structure of any State Civil Service
will be a function of the bargaining power of their union officials. Since this took pre-eminence over willingness
to pay and ability to pay. Willingness to pay which was the second mean indicated that the state government had
the ability to pay. Given this, with strong negotiating skills and bargaining power at the state level, it means that
salary differentials in the civil services of Nigeria can be bridged. The factor Ability to pay has the least
standard deviation (0.616), followed by willingness to pay (0.791) and weak bargaining power at the state
level by union leader (0.807). This suggest that ability to pay has the most significant of decentralised collective
bargaining impact on salary differentials.
Meanwhile, salary structures differed from State to State and between the Federal Civil Service and
other civil services in the country. The Minimum Wage
Meanwhile, salary structures differed from State to State and between the Federal Civil Service and
other civil services in the country. The Minimum Wage Table in each of the State of the Federation is hereby
presented.
Table 3 Minimum Wage Across the Civil Services in Nigeria as at December, 2010
S/N
Federal /State Govt Minimum
20
Kano
7,500
Wage
21
Kastina
9,700
1
Abia
9,695
22
Kebbi
6,500
2
Adamawa
9,522
23
Kogi
7,500
3
Akwa Ibom
10,600
24
Kwara
9050
4
Anambra
8,675
25
Lagos
10,300
5
Bauchi
11,000
26
Nasarawa
7,590
6
Bayelsa
7,500
27
Niger
5,500
7
Benue
6,700
28
Ogun
9,000
8
Bornu
9,000
29
Ondo
10,050
9
Cross Rivers
8,400
30
Osun
9,500
31
Oyo
9,400
10
Delta
9,400
32
Plateau
7,500
11
Ebonyi
8,687
33
Rivers
7,500
12
Edo
9,400
34
Sokoto
7,500
13
Ekiti
7,300
35
Taraba
9,400
14
Enugu
8,575
36
Yobe
7,500
15
Federal Government 17,020
37
Zamfara
10,300
16
Gombe
6,348
Source: Field work, June, 2011
17
Imo
7,500
18
Jigawa
7,500
19
Kaduna
8,799
Findings from Table 3 reveal that Bauchi state paid the highest minimum wage among the thirty six
States of the Federation. It is followed by Zamfara and Lagos State that paid N10,300 minimum wage per month;
respectively, while Ondo state was the fourth on the list with N10,050 per month. Niger State was the least on

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Journal of Resources Development and Management

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Vol.4, 2015

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the list with N5,500 per month. However, on the average majority (Bayelsa, Rivers, Plateu, Jigawa, Imo, Yobe,
Kogi, Sokoto, Kano, Jigawa) ten of the States paid N 7,500 per month, while those that paid between N 9,000
and N 9,700 were eleven States (Abia, Ogun, Bornu, Adamawa, Kwara, Oyo, Osun, Taraba, Edo, Delta and
Kastina). However, those that paid between N 10,000 and N 10,500 were three States (Akwa Ibom, Zamfara and
Lagos).
The implication of this is that N7500 was the average among the State. Those that paid less than N7500
were five States (Ekiti, Niger, Gombe, Benue and Kebbi States). However, none of the states paid up to N17,020
which the Federal Civil Service paid to its civil servants. This implied that the salary differntials between the
Federal Civil Service and all the States of the federation was significant while the differentials among the states
were not as significant as the Federal Civil Service.
The salary structure of the selected State civil services from grade levels 07 to 17 and grade level 01
step 01 are presented below.
Salary Structure in the Selected Civil Services in Nigeria
Presented below are the salaries for officers on salary Grade levels 01 step 01 and from 07 step 01 to 17
step 01 in selected States and Federal Government as of December 2010.
Table 4a:
Salary Grade Structure in the Selected Civil Services in Nigeria
STATE
ADAM
AWA
ENUG
U
KWAR
A
OYO
CRS
KADU
NA
FG

Salary Grade level

01/Step 01

Salary Grade level

07/Step 01

Salary Grade level

08/Step 01

Salary Grade level

09/Step 01

Salary Grade level

10/Step 01

Salary Grade level

12/Step 01

9,522.26

16,219.33

20.525.13

23,534.09

27,052.60

31,156.27

8,575.11

17,013.23

21,511.91

24,882.52

28,822

33,920

9,050.00
9,400.00
8,400.00

17,426.00
18,010.00
16,362.88

21.888.48
23,432.00
20,773.30

25,183.00
25,183.00
23,802.29

29,140.00
28,983.00
27,449.57

34,300.56
32,745.00
32,824.63

8,799.00
17,073.00

17,257.16
42,263.75

22,464.91
54,615.75

26,556.80
64,154.83

30,929.49
75,309.25

36,250.95
86,867.33

Sources: Ministries of Finance in the selected states, 2010

Table 4b: Salary Grade Structure in the selected Civil Services in Nigeria
STATE

ADAMAW
A
ENUGU
KWARA
OYO
CRS
KADUNA
FG

Salary Grade level

13/Step 01

Salary Grade level

14/Step 01

Salary Grade level

15/Step 01

Salary Grade level

16/Step 01

Salary Grade level

17/Step 01

33,759.99
37,552
37,902.48
36,284.63
35,824.63
40,544.79
96,952.75

36,003.39
41,200.71
41,521.20
40,073.00
39,273.72
44,768.25
107,084.83

55,034.47
46,949.38
58,769.64
49.067.00
40,225.00
63,985.00
146,484.67

58,823
51,661
74,825.00
54,078.00
50,597.00
83,129.00
182,239.75

63,517
57,071
80,191.44
59,847.00
55,967.00
89,392.00
347,733.33

Sources: Ministries of Finance in the selected states, 2010.

In Nigeria, just like in many other countries, determination of salary structure is based on the
qualification and experience of the individual concerned. This is often followed by the annual incremental
process whereby a civil servant progresses by steps. Above are presented the table showing the salary grades of
civil servants of grade level 01 step one (which represents the minimum wage) and salary grade levels 07 step
one to grade level 17 step one. The decision to use these grade levels for this study is borne out of the fact that
grade level 01 step one is the entry point of the minimum wage for civil servants with lower levels of education
and grade levels 07 step one and above is the entry point for those with higher education in the Civil Service.
Besides, the levels 07 and above are the ones always serving as the voice of the civil service and whose views in
the agitation for collective bargaining are often respected.
Table 4 shows that Adamawa State, with a minimum wage of 9,527.26 naira a month, has the highest
minimum wage. They are closely followed by Oyo State with 9,400.00 naira and Kaduna State with 8,799.00
naira. Interestingly, this differential is not reflected in the salary grades of level 07 officers. While Oyo State
pays 18,010.00 for those in step one, Adamawa, paid less than this (16,219.33) for this category of officers. In
fact, while Adamawa paid highest for those in grade level 01, she pays the least for those in grade levels 07-14.
Kaduna State, which paid one of the lowest salaries for their grade levels 01 officers, paid the highest salaries for
officers from levels 09 to 17. The effect of this is that, officers in grade level 15 in Kaduna State earned more
(63,985.00) than officers in grade level 17 in Adamawa and Enugu States (63,517 and 57,071 respectively).
Beside all these, it is also noteworthy that a grade level 16 officer earned much less (51,661) than a
grade level 08 officer in the Federal Civil Service with 54,615.75 naira. This wide salary differentials among the

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States and the Federal civil services is a major cause of industrial dispute between the government and the
organized labour unions bearing in mind the fact that the same entry qualifications were used as yardstick for the
recruitment of these officers.
4.5

Decentralised Collective Bargaining and Industrial Harmony

This section presents and discusses data on the effects of decentralised collective bargaining and salary
differentials on industrial harmony in the civil services of Nigeria.
Table 5: Table on Questions on Decentralised Collective
Bargaining and Industrial Harmony in the Civil Services in Nigeria
S/N ITEMS
SA
A
1
2
3

4
5

6
7

Salary differentials have effects on the ability of State Civil

Service to recruit, motivate and retain the best personnel
There is high labour turnover in the state civil service as a
result of salary differentials
The low salary in your state civil service has made the civil
service not to be a place of choice employment for the
youth
Salary differentials are a major cause of industrial
disharmony in the civil service in Nigeria.
Non availability of institutional framework for fixing and
adjusting the national minimum wage is a major cause of
industrial conflict.
Decision on minimum wage should not be Federal
Governments exclusive right
Minimum wage in your civil service is a reflection of cost
of living in your locality

SD

TOTAL

38.7

34.2

8.4

7.3

11.4

100

35.8

11.9

30.9

17.4

4.0

100

44.8

25.1

3.3

7.3

19.5

100

59.0

26.7

2.9

4.6

6.8

100

46.9

30.0

8.8

9.0

5.3

100

43.1

22.9

8.2

10.6

15.2

100

27.7

11.4

4.0

17.6

39.3

100

Source: Fieldwork, June, 2011

Table 5 shows that majority of the respondents were of the view that salary differentials have effects on
the ability of State Civil Service to recruit, motivate and retain best personnel 38.7% and 34.2% respondents
strongly agreed and agreed respectively, while 11.4% and 7.3% strongly disagreed and disagreed respectively.
Meanwhile, 8.4% of the respondents were undecided. In a related development, majority of the respondents were
of the view that there was labour turnover in the State Civil Service as a result of inter-Civil Service salary
differentials in the civil services in Nigeria 35.8% and 11.9% strongly agreed and disagreed respectively. Others,
4.0% and 17.4% respondents strongly disagreed and disagreed respectively. However, 30.9% of the respondents
were undecided.
This implies that salary differentials have adverse effects on the recruitment of the young ones into the
State civil services. The few ones that were employed only used the civil services as a stepping stone to other
better paid employments elsewhere. Furthermore, majority of the respondents were of the view that salary
differentials was a major cause of industrial disharmony in the civil services of the Federation 59.0% and 26.7%
respondents strongly agreed and agreed respectively. Others, 6.8%, 4.6% and 2.9% strongly disagreed, disagreed
and undecided respectively.
This shows that the civil servants across the six geo-political zones viewed decentralised collective
bargaining as a major cause of salary differentials in the civil services in Nigeria. The reason is that once the
federal government increased the salary of the Federal Civil Service, State Governments usually find it difficult
to pay at the Federal rate. As a result, it usually led to protracted strike actions because State Governments used
to settle for less salary. In fact, most of the industrial actions in the civil services from 1991 to date were
attributed to salary differentials in the civil services in Nigeria. Further, it was revealed that local issues were not
significantly responsible for industrial actions in the selected States.
In a related development, majority of the respondents were of the view that non-availability of
institutional framework for fixing and adjusting the national minimum wage was a major cause of industrial
conflict in the civil service in Nigeria, as 46.9% and 30.0% of the respondents strongly agreed and agreed
respectively. However, very few respondents 5.3%, 9.0% and 8.8% strongly disagreed, disagreed and were
undecided, respectively. Although there existed institutions such as the PPIB and the National Council on
Establishment to determine wages and salaries in Nigeria, these institutions only existed in name but were not
functional; hence salary increments were done arbitrarily. The arbitrariness was a major cause of industrial
actions in the civil services in Nigeria.

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Journal of Resources Development and Management

ISSN 2422-8397 An International Peer-reviewed Journal
Vol.4, 2015

www.iiste.org

Similarly, Federal Governments unilateral decision on minimum wage is seen as one of the causes of
industrial disharmony in the civil services in Nigeria. As a result, majority of respondents were of the view that
decisions on national minimum wage should not be the Federal Governments exclusive right; hence 43.1% and
22.9% strongly agreed and agreed, while 15.2%; 10.6% and 8.2% of the respondents strongly disagreed, agreed
and undecided, respectively. This implies that the Federal Government did not always carry other stakeholders
along in fixing the national minimum wage, most especially the State Governments. This explains why State
Governments, most times, complained about minimum wage implementation in the civil service. This is usually
a source of conflict between Unions and State Governments during the implementation of any new national
minimum wage.
Furthermore, majority of the respondents were of the view that minimum wage in their locality was not
a reflection of the cost of living in their area 39.3% and 17.6% of the respondents strongly disagree and disagree
that minimum wage in their locality is a reflection of the cost of living in their locality. Others, 27.7% and 11.4%
of the respondents strongly agreed and agreed respectively, while 4.0% were undecided. Since the salary in any
of the six geo-political zones was not a reflection of the cost of living, it implies that civil servants would always
feel that their salaries were inadequate and agitate for increment.
Consequently, respondents were of the view that decentralized collective bargaining and salary
differentials led to a tense industrial climate and incessant strike actions in the civil services in Nigeria. The
reason for this is that salaries were easily compared and with the presence of federal workers in all states,
coupled with the fact that both the state workers and that of the federal are subjected to the same market indices
within such state, state industrial harmony were always put to test with demand from its work force.
Besides, being the major cause of industrial disharmony in the civil services in Nigeria, the interview
revealed that the policy made the average civil servants to become demoralized and almost at the verge of being
frustrated and thus lose morale, dedication and commitment that could invigorate the civil service for efficient
service delivery. Similarly, it has caused brain drain in state civil services across the federation. This is evident in
the responses most especially from the government side. Their submissions were that the best usually use the
state civil services as a stepping stone to the federal or viable private sector. Thus young graduates are not
motivated to join the service.
Table 6:
Mean value and Standard Deviation of Some of the Causes of Industrial Conflicts
ITEMS
N
MEAN
SD
Non existence of institutional framework for salary determination.
551 1.70
.737
Unilateral increment by federal government.
551 1.88
.748
State government retroactive approach to minimum wage Act in the country
551 1.82
.819
Source: Fieldwork, June, 2011
From Table 6, unilateral increment by the Federal Government has the highest mean of 1.88 followed
by state government retroactive approach to minimum wage legislation 1.82 and lastly by non existence of
institutional framework for salary determination 1.70 respectively. This implies that unilateral increment of
salary by the Federal Government was one of the major causes of industrial disharmony in the civil services in
Nigeria.
On the problems of decentralised collective bargaining, the factor Non existence of institutional
framework for salary determination has the least standard deviation (0.737), followed by the factor unilateral
increment by federal government (0.748) and state government retroactive approach to minimum wage Act in
the country (0.819). Thus the most significant factor is the Non-existence of institutional framework for salary
determination. Presented hereafter is the statistics on Industrial conflicts in the Country.
Table 4.7:
Summary of Industrial Disputes in Nigeria from 2003-2007
Year
No of
Number of
Number of
Duration of
Number of
Total Man day
disputes
disputes
Dispute
Dispute
workers
lost
resulting in
resolved
(days)
involved
strike
2003
77
28
57
645
249,697
5,690,952
2004
36
26
32
277
127,377
2,737,399
2005
149
57
110
675
280,606
4,308,013
2006
189
63
79
910
208,589
7,785,993
2007
250
79
212
1,264
414,534
13,227,957
Source: Federal Ministry of Employment, Labour and Productivity, Abuja
From Table 7, 2007 had the highest recorded number of 250 disputes while 212 disputes were resolved,
79 led to strike actions for 1,264 days involving 414,534 workers and 13,227,957 total man-day was lost. This is
followed by 2006 with 189 recorded disputes. Although 79 disputes were resolved, 63 disputes resulted into

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Journal of Resources Development and Management

ISSN 2422-8397 An International Peer-reviewed Journal
Vol.4, 2015

www.iiste.org

strike action for 910 days involving 208,589 workers which made 7,785, 993 total man day to be lost. In 2005,
149 disputes were recorded, 110 disputes were resolved, 57 led to strike actions in 675 days involving 280,606
workers and 4,308,013 total man day lost. There was relatively industrial peace in 2004 with 36 number of
disputes recorded while, 32 disputes were resolved 26 resulted in strike action for 277 days involving 127,377
workers and 2,737,399 total days lost. It was higher than this in 2003 with 77 disputes recorded. However, 57
disputes were resolved while 28 led to strike actions for 645 days involving 249,697 workers and 5,690,952 total
man-days lost.
From the above analysis, 2007, being an election year, the number of disputes were expected to be high
because of the political implication of industrial disputes. Workers were expected to use the period to make
demands on government and because of electioneering campaign and the need to legitimize government, the
party in power was expected to succumb to workers demand. It was also high in 2006 because it was a build up
to an election year. It was low in 2004 because of the political environment then (the year that followed an
election year).
Conclusion
Decentralized collective bargaining was designed to solve the problems associated with salary determination
process in the Civil Services in Nigeria, however the policy has brought intra-Civil Service and Inter-Civil
Services salary differentials into the public service. Thus by extension heat up the industrial relations sector by
the member of strikes actions witnessed in the Civil Services across the country.
Therefore in order to reduce these industrial conflicts, decentralized collective bargaining should be
modified to reflect the ecology of public administration in Nigeria.
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